BY NED GAGAHE

Minister of Finance and Treasury Harry Kuma told parliament on Monday that the government is making significant progress on tax reforms as part of its broader efforts to modernize the tax system and stimulate economic growth in Solomon Islands.

Speaking during the motion to thank the Governor-General for the Speech from the Throne, Minister Kuma said the reforms aim to improve the business environment through a fairer, simpler and more efficient tax system that ensures all liable taxpayers pay the correct amount.

“The tax reform agenda is a substantial and resource-intensive undertaking,” Kuma said. “That is why the government has adopted a phased approach to its implementation.”

Phase one of the tax reform includes the development of the Tax Administration Act and the Value Added Tax (VAT) Bill.

The Tax Administration Act, passed by Parliament in 2022 and enacted on January 1, 2023, provides the legal framework for the consistent administration of tax laws in the Solomon Islands.

“The Act modernizes administrative arrangements and harmonizes the rules across all tax laws administered by the Commissioner of Inland Revenue,” Kuma explained. “It also amends several existing laws—including the Goods Tax Act, Income Tax Act, Sales Tax Act and Stamp Duties Act—to ensure their administration falls under the new Tax Administration Act.”

The second major component of phase one is the introduction of a Value Added Tax (VAT) system.

Minister Kuma said the VAT Bill 2025 has completed final vetting by the Attorney General’s Chambers and is expected to be introduced in Parliament by mid-2025.

“The VAT is a consumption tax applied to most goods and services, collected at each stage of the supply chain, with businesses able to deduct VAT paid on their inputs,” he explained. “Ultimately, it is a tax on final household consumption.”

He added that a Cabinet paper seeking approval to table the VAT Bill has been prepared.

“I urge all Members of Parliament to support this important legislation when it comes before this Honorable House. It will transform our tax system, enhance business growth and strengthen government revenue.”

Minister Kuma also announced that initial work has begun on phase two of the tax reform agenda, which focuses on a comprehensive rewrite of the Income Tax Act.

He said Cabinet approved key policy issues in 2024 that could be included in the rewrite and the Economic Reform Unit, in collaboration with ADB advisors, is now developing a detailed policy paper to support this effort.

“These reforms are crucial for building a tax system that is not only modern and efficient but also equitable and capable of supporting long-term national development,” Kuma said.

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BY INDY MAEALASIA

THE completion of the Gizo Youth Center in Western Province may be delayed until August, despite official announcements targeting a July opening.

JOGOS Construction, the contractor working on the project since last year, told this paper that the delay is largely due to persistent bad weather and logistical challenges, as key construction materials are being sourced from Honiara.

According to the contractor, roofing work has already been completed, but several interior tasks remain before the facility can be fully operational.

“It will be like a hall, so there isn’t much to be done internally,” the contractor said.

Minister for Women, Youth, Children and Family Affairs (MWYCFA) Cathy Nori announced in Parliament on Wednesday that the center will provide a dedicated space for youths to gather, engage in activities and access support and resources.

“For a very long time, our children and youth have not had a proper home for their activities,” she said. “Many times, due to the lack of facilities, they have been forced to organize their programs under the scorching sun or in the pouring rain and wind.”

She expressed optimism that the opening of the Gizo center will mark a turning point in youth development across the provinces.

“We believe this will become a thing of the past if these centers are built across the country. Our youth and children will finally have a place they can call their home.”

The Gizo Youth Center is the first of several planned facilities aimed at creating safe and inclusive spaces for young people in the provinces, as part of the ministry’s broader youth empowerment initiative.

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BY INDY MAEALASIA

THE Minister for Women, Youth, Children and Family Affairs (MWYCFA), Cathy Nori, has thrown her full support behind the Governor General’s call to address inefficiency, complacency and incompetence within the public service.

Speaking in Parliament on Wednesday in response to the speech from the throne, Minister Nori said the call for greater accountability and performance in the public sector was timely and necessary.

“Let me also thank and give my utmost support to sentiments raised by the Governor General on public officers being committed and faithful to their work,” she said.

Nori emphasized that there is no room for complacency or incompetence in government and acknowledged that ministries, including her own, must do more to serve the people effectively.

“We have an inherent responsibility to deliver services to our people — to make them feel safe and ensure a secure future,” she said. “This responsibility also means utilizing the limited resources we have to benefit everyone. We must all be accountable for our actions.”

The minister criticized the common practice of reassigning underperforming staff to other ministries rather than holding them accountable.

“We must put a stop to the practice of transferring incompetent staff to other ministries,” she said. “Let us stop shielding underperforming staff while being harsh on the vulnerable ones. The process is very clear.”

She further stressed that real change must come from within the government and its institutions.

“It is us — the government, the ministries and the public service who must play our part to make this work,” she said.

 Nori assumed the ministerial role following the resignation of her predecessor, Freda Tuki Rangirei.

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BY JOHN HOUANIHAU

On Wednesday night, 14 May, significant rainfall caused flooding in various shops.

The heavy rain in Honiara resulted in extensive flooding throughout the city and parts of Guadalcanal province.

The shops beneath the Solomon Islands National Provident Fund building (SINPF) and the Anthony Saru building were among the affected shops in Honiara.

Yesterday morning, Thursday, 15 May, the affected shop began the process of cleaning up the debris and mud that had entered their premises.

At 4 PM yesterday, the Solomon Islands Meteorological Service (SIMS) issued a heavy rain warning, which remains in effect for Isabel, Malaita, Guadalcanal, Central, Makira, Rennell/Bellona, and Temotu. Additionally, a strong wind warning was issued for Makira, Rennell & Bellona, and the southern waters of Guadalcanal.

This weeklong period of bad weather was due to a trough located just south of the country, associated with a tropical low situated west-southwest of Rennell and Bellona province, which is moving southward.

SIMS has strongly advised the public to take necessary precautions to ensure safety and prevent loss of life. However, they also indicated that the weather is expected to improve this weekend.

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BY NED GAGAHE

Minister of Finance and Treasury Harry Kuma has revealed that the Solomon Islands’ economic recovery has surpassed pre-COVID-19 levels.

Speaking in Parliament on Monday during his contribution to the motion to thank the Governor-General for the Speech from the Throne, Minister Kuma stated that Solomon Islands economy grew by 2.7 percent in 2024.

“Mr. Speaker, Sir, the Solomon Islands economy grew by 2.7 percent in 2024, following a 2.9 percent growth rate in 2023. This is well above the pre-COVID-19 level of 1.7 percent recorded in 2019.”

He said that the lower growth in Gross Domestic Product (GDP) in 2024, compared to the previous year, is attributed to a combination of external and internal factors.

These include global market challenges, local disruptions related to the National General Election, stabilization in logging activities, adverse weather conditions affecting agriculture and infrastructure and a decline in construction activity following the completion of the Pacific Games in 2023.

On key economic indicators, Minister Kuma reported that labor market performance improved by 4 percent in 2024 compared to 2023.

The number of active contributing members rose to 59,494 in 2024, up from 57,151 in 2023.

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BY LORETTA B MANELE

Jamie Vokia, Minister for Commerce, Industry, Labour and Immigration (MCILI) has introduced the Special Economic Zone Bill in parliament yesterday.

He described the bill as a “milestone” not only for the ministry but for every Solomon Islander who dreams of a brighter and more prosperous future.

The Member of Parliament for Northeast Guadalcanal Constituency said the bill is the culmination of years of dedication from task forces, public servants and countless stakeholders across Solomon Islands who believe in the transformative power of inclusive economic growth.

He expressed that as reflected in its title, the bill once enacted; will provide for the establishment and management of Special Economic Zones in our beloved country.

Vokia also stated that the bill will facilitate business and investments in a way that fosters economic growth, creates meaningful employment and lifts our national development for the benefit of all Solomon Islanders.

He said the bill holds immense promise for our people, not just as engines of investment, but as bridges to overcome the challenges our business communities face on a daily basis.

Vokia added that this bill aligns with our National Development Strategy 2016-2035 and echo the aspirations of our people to a more resilient and diversified economy.

“It also answers the core of the GNUT Government Policy Statement 8.28 to enact legislation that nurtures new industries, empowers local and international investors and above all, creates opportunity for our people.”

He voiced that the journey to this moment has come a long way, having started over a decade ago.

Vokia said this has been one of the most collaborative and far-reaching efforts his ministry has undertaken.

“From the outset, we sought to ensure that every voice, whether from our provinces, businesses; our civil society is heard.”

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BY NED GAGAHE

Harry Kuma, Minister of Finance and Treasury (MoFT) has revealed that the government continues to see strong performance in total Solomon Islands Government (SIG) revenue collection for the year, 2024.

Contributing to the motion to thank the Governor-General for the Speech from the Throne on Monday, Minister Kuma stated:

“Mr. Speaker, Sir, the government continues to see strong performance in total SIG revenue collections in 2024. Total SIG revenue receipts collected were 7 percent above the projected estimate of $3,312 million.”

He noted that the strong revenue performance was largely driven by collections from Inland Revenue Division (IRD) and Customs, offsetting lower-than-expected non-tax revenue from other ministries which achieved only 85 percent of their targets.

“Sir, on the expenditure side, the government executed approximately 95 percent of the total revised budget, with 92 percent of the recurrent budget utilized,” he added.

Minister Kuma also reported that actual development expenditure reached 76 percent, or $501.4 million. The 24 percent underspending was primarily attributed to a slowdown in government activities both before and after the general elections.

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BY JOHN HOUANIHAU

Ministry of Fisheries and Marine Resources (MFMR) continues to address the challenge of coastal fisheries management through its community-based management programme.

Speaking on the floor of parliament this week, Fisheries Minister Bradley Tovosia said that coastal fisheries management is one of the challenges for the ministry.

“Mr Speaker, sir, our greatest challenge is the sustainable management of our coastal fisheries. With the increasing population that needs daily nutrients, the pressure on our coastal fisheries is great. The Ministry continues to address this pressure by implementing its community-based resources management programme in our communities,” said Tovosia.

He said that communities establish their marine areas and create plans for managing their resources under this programme.

“We have reached over 1,000 communities through this programme,” he said.

The minister also highlights the need to enhance the country’s laws to address these challenges.

“Mr Speaker, sir, the sustainable management of our fisheries cannot be achieved without the effective enforcement of our laws. We take this seriously. However, compliance work requires significant investment and support,” said Tovosia.

He said that the ministry’s work plan for this year will include the review and aim to amend the Fisheries Management Act 2025 and a review of coastal and seashore fisheries regulations.

“Review, monitoring, control and surveillance and other related policies will allow for the effective enforcement of our law,” he said.

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